Editor´s note: This is a guest post by Abhishek Agarwal, CEO and Co-Founder of MobiCommerce.
Digital currencies are revolutionizing technology, making it easier for consumers to transfer funds across the globe. What’s more, the whole transfer process is instant, secure and doesn’t need the intervention of a middleman (banks/financial institutions). Bitcoin is one of the most common digital currencies that are changing eCommerce. How is it transforming eCommerce? Let’s talk about eCommerce and bitcoin.
What are the difficulties faced by customers currently using traditional mobile payment system?
Now, for you to send money using traditional mobile payment system, you have to go through the whole process that involves inputting the receiver’s mobile number, the amount to be sent, your PIN number and then wait for your transaction to be completed.
There are some few downsides to this process, and they include:
Inputting the wrong mobile number
If, by mistake, you input the wrong mobile number, the recovery process is not easy. You need to call the service provider, explain that you have sent money to the wrong person and hope that they can recover the money. If the recipient has not withdrawn the money yet, it can be reversed. However, if your luck runs out and you find that the recipient has withdrawn the money, it cannot be recovered. You end up losing the money, and there is nothing that can be done about it.
If someone gets access to your PIN number, which is easily possible; your money is at risk of being stolen. As long as the PIN is correct, the transaction can go through quite easily, and you may end up losing cash instantly.
For every transaction made (money sent or withdrawn), there is a fee that has to be paid. If you do not have an inclusion of the transfer charge, the chances are that you will not make transactions.
If you are making payments via your mobile phone, the same snares are expected to occur. This can be a little frustrating, including the fact that every transaction has to verify your identity; hence, there is no privacy as is the case with bitcoin and other digital currencies.
How to improve mobile shopping experience with digital currency
Digital currency can widely promote the overall shopping experience because all you need is to purchase the bitcoins from one of the many brokerages or online exchanges by transferring money from your regular bank account. Once you have bought the bitcoins, you assign them to a wallet, which is more or less like an online account. When you are shopping, all you need to do is open the mobile app of the wallet and hold the QR code reader up to the particular store’s device. The embedded secret password then unlocks the address of your bitcoin and informs the bitcoin computer network of the transfer that is happening to the shop’s address. What’s good about it is that the entire process only occurs within a few seconds. The confirmation of the whole process, unlike the traditional systems that take up to four days, this one takes less than 10 minutes.
What will be the impact of such things on mobile commerce?
The relationship between eCommerce and Bitcoin is proving to be a good one. Money transfers will be instant, cheap and safe. Unlike the case is with traditional money transfers where transfers can take up to a week because of the paperwork involved, transfers could be possible without the use of any new currencies. It will even be possible to transfer funds from one given currency to another, for instance, from euros to dollars by only using a secure digital ledger.
The use of digital currency can help private users to send money to their families directly using their mobile phones. Here, the only fee that will be charged is the one by currency exchanges. With this, there are no delays and people can save while still sending money. The poor will have a better way of accessing money without having to store what they already have at home or in the form of jewelery, which is quite unsafe.
Most firms usually avoid international payments because of the credit card fraud that is involved with it. Having a digital currency like a bitcoin ensures that once a transaction is done, it cannot be undone. This is a good way to eliminate fraudulent risks, making it possible for merchants to sell worldwide. As a result, online shopping would be the better option for shopping since it would be a much smoother process.
The availability of digital currencies also makes it a possibility for small businesses to engage in global eCommerce and bitcoin. Digital currencies allow smart contracts and programmable money to be possible. This is a good way to ensure that business transactions are carried out safer considering that, once an asset is digital, moving it is easily done automatically.
Author´s Bio: Abhishek Agarwal is CEO and Cofounder of MobiCommerce offering a mobile commerce solution that builds PrestaShop and Magento mobile app for eCommerce stores. With an entrepreneurial experience of 14 years, he is a visionary who proactively look out for the next big thing. He is well versed with trends in the market and love to write about them.